Which are fictitious assets?

Which are fictitious assets?

Expenses or losses that are not written off during the accounting period of occurrence because they give long-term benefit over a period of time are categorized as fictitious assets. Marketing expenses, bank NPAs, discounts on the issue of shares, and debenture losses are few examples of fictitious assets.

What are fictitious assets give examples?

Fictitious assets are the deffered revenue expenditure as well as intangible assets i.e advertisement expenses, discount on issue of shares and debentures. But point to be remembered that Goodwill, Patents, Trade Marks are not the part of Fictitious assets.

Is goodwill is a fictitious asset?

It cannot be touched and felt and therefore, goodwill is an intangible asset. Fictitious assets on the other hand, are the expenses or losses which are still to be charged from the profit and therefore, cannot be classified as tangible or intangible.

Is debtor a fictitious asset?

All rights of proprietor which an enterprise owns are included in this e.g., cash, cash at bank, investments, stock, bills receivable, debtors, land & building, plant & machinery, trade marks, patent right, etc. (vi) Fictitious Assets.

Which of these is not a fictitious asset?

Among the given options Discount on issues of shares and debentures is not the example of fictitious assets.

What is the journal entry for scrapped assets?

Debit all accumulated depreciation and credit the fixed asset. Loss on sale. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.

How do you remove assets from a balance sheet?

The entry to remove the asset and its contra account off the balance sheet involves decreasing (crediting) the asset’s account by its cost and decreasing (crediting) the accumulated depreciation account by its account balance.

How do you record capital assets?

Acquisition: Accounting for Purchase of Fixed Assets. To record the purchase of a fixed asset, debit the asset account for the purchase price, and credit the cash account for the same amount.

What are written off assets?

Written off assets are those the bank or lender doesn’t count the money borrower owes to it. The financial statement of the bank will indicate that the written off loans are compensated through some other way. But in the balance sheet of the bank, a bad asset should not remain bad forever. …

What is the difference between write down and write off?

The difference between a write-off and a write-down is just a matter of degree. A write-down is performed in accounting to reduce the value of an asset to offset a loss or expense. A write-down becomes a write-off if the entire balance of the asset is eliminated and removed from the books altogether.